Ukrainian regulators, Security Service, Gambling Industry Association shut down 133 illegal online casinos

Ukraine's Security Service, the State Service of Special Communications and Information Protection, the National Commission for the State Regulation of Electronic Communications, Radiofrequency Spectrum and the Provision of Postal Services (NCEC), and the Association of Ukrainian Gambling Operators (AUGO) have jointly blocked 133 illegal online casinos operating within Ukraine's digital space.

According to AUGO's press release on Tuesday, Derzhspetszviazok issued Directive No. 435/3236 on July 1, ordering the blocking of IP addresses and websites involved in illegal gambling. The directive was sent to internet providers and industry associations on July 3 and is mandatory for implementation within three working days—by July 8.

The association estimates that the joint operation disrupted a shadow business generating UAH 3 to 5 billion in illicit turnover every quarter.

Beyond blocking the sites with technical and software tools, the operation included broader organizational and technical efforts targeting the infrastructure that enabled these illegal platforms to function. Notably, unauthorized financial processing was halted, and associated P2P transactions were frozen.

"In chess terms – white has made the first move, and black is already losing pieces on the board… No, we're not grandmasters yet. But this will be a decisive chess match, and we're convinced the illegal players will eventually have no choice but to leave the game," said AUGO President Oleksandr Kohut, as quoted in the press release.

He emphasized that illegal casinos – most of which now have ties to Russia – inflict direct harm on the Ukrainian state, legal businesses, and its citizens. These sites, which are frequently cloned after being blocked, also pose a high risk of fraud and the leakage of players' personal and financial data.

This marks the first time the Security Service, Derzhspetszviazok, and NCEC have actively partnered with AUGO on such an initiative. The association, which was launched three months ago, provided software, analytical, and informational support for the operation to dismantle the illicit online gambling sector.

Kohut affirmed that AUGO remains committed to further collaboration with regulators – including the Ministry of Digital Transformation and the newly formed PlayCity agency – as well as with law enforcement to swiftly detect and shut down illegal casinos online. AUGO also plans to work with state regulators to inform media outlets of future blocking decisions as soon as they are made and communicated to telecom operators.

AUGO is an independent, self-regulating organization uniting Ukraine's leading licensed gambling operators. Its mission is to promote market transparency, establish clear rules, and combat the illegal gambling sector.

According to estimates published by the association in May 2025, 30–50% of Ukraine's gambling market remains in the shadows. The Ministry of Digital Transformation estimates annual state losses from this black market to be as high as UAH 10 billion. Meanwhile, Ukraine's legal gambling industry paid over UAH 17 billion in taxes in 2024 and UAH 6.4 billion in the first four months of 2025.

Since February 2025, state policy on gambling has been overseen and coordinated by the Ministry of Digital Transformation. On March 21, the Cabinet of Ministers approved the creation of a new central executive body – PlayCity – which officially replaced the previous regulator, the Commission for the Regulation of Gambling and Lotteries (CRGL), as of April 1.

The CRGL had previously issued 7,217 gambling licenses and canceled 4,123. In late June 2025, with support from AUGO, PlayCity submitted a request to the NCEC to block 824 illegal online casinos.

Under current law, the NCEC has the authority to block illegal gambling websites based on submissions from PlayCity and the Security Service.